Argentina: time to come clean on inflation?

Argentina remains on a collision course with the IMF over the accuracy of its consumer price data. The Fund has threatened to impose sanctions if corrective measures are not taken by 29th September and, by way of a response, the Argentine authorities have pledged to introduce a new CPI index. But few believe that this will be the end of the matter. The problem for Argentina is that with the economy seemingly slipping towards a balance of payments crunch, it is now more crucial than ever that the government buries the hatchet with the IMF and restores access to global capital markets.